GROWTH in the UK’s dominant services sector remained lacklustre in September, as the rates of increase of new business and employment slowed, a key survey shows.

The Chartered Institute of Procurement & Supply’s survey of the services sector, combined with its reports on manufacturing and construction earlier this week, signals the UK economy managed only weak growth in the third quarter.

Chris Williamson, chief business economist at CIPS survey compiler IHS Markit, said the surveys pointed to third-quarter UK growth of just 0.3 per cent. This is the same way-below-trend rate of expansion as that recorded in the three months to June.

CIPS’s business activity index for the UK services sector for September was up only slightly from an 11-month low in August, increasing from 53.2 to 53.6 on a seasonally-adjusted basis. While this pointed to a slight acceleration in services growth, CIPS noted the pace of expansion remained weaker than the average for the first half of this year.

The new business index for the services sector dropped from 54.2 to 53.3. The employment index fell from 54.7 to 53.2.

Mr Williamson said: “With the exception of the slowdown seen in the months surrounding last year’s [European Union membership] referendum, the third-quarter performance was the worst since the first quarter of 2013.”

He added: “Within services, consumer-facing companies have reported especially weak growth in recent months. The slow erosion of [services] growth may continue in coming months.”